New Living Wage 'to benefit one-in-three working women'
10 Sep 2015
The introduction of the National Living Wage (NLW) means that some 3.7 million women will benefit from a pay rise by 2020, according to new research from the Resolution Foundation.
Conor D’Arcy, the think tank’s policy analyst, advises that ‘because of their concentration among the low paid, women will account for the majority of the winners.
This will have a positive – though modest – effect on the gender pay gap, and will particularly help those working part-time’.
Additionally, the report also suggests that 2.3 million male workers will benefit from the introduction of the NLW.
In total, some six million employees – nearly one in every four workers – stand to see their wages increase by 2020 either as a direct or indirect result of the new NLW.
Announced in the Chancellor’s July Budget, the NLW of £7.20 an hour comes into effect in April 2016. This wage will only apply to those workers aged 25 and above.
The research indicates that some workers who already earn more than the recommended NLW will gain from the ‘ripple effect’ of rises.
However, many employees’ earnings will rise in line with the current National Minimum Wage (NMW). The NMW currently stands at £6.50 an hour, rising to £6.70 next month.
Earlier this week, the Government unveiled plans for tougher penalties for employers who fail to meet minimum wage requirements.